Protecting Wages and Bank Accounts from Garnishment
A wage garnishment can take a quarter of every paycheck; a bank levy can freeze the account the rent comes from. Bankruptcy stops both instantly through the automatic stay, and exemption law decides how much of your earned wages and deposited cash stays yours.
Wage exemptions before you file
Arizona protects the greater of 90% of disposable earnings or amounts tied to the minimum wage (A.R.S. § 33-1131, as amended by Proposition 209); Washington protects a floor tied to the state minimum wage. Judgment creditors can only garnish what's left above those floors.
The automatic stay ends garnishment on filing day
The moment a Chapter 7 or Chapter 13 petition is filed, the automatic stay legally requires the garnishing creditor and your employer's payroll department to stop withholding. Wages garnished shortly before filing can sometimes be recovered as preferences if they exceed statutory thresholds.
Cash in the bank on filing day
Money sitting in an account when you file is property of the estate unless an exemption covers it — Arizona exempts a set amount per account holder under A.R.S. § 33-1126. Timing the filing around paydays and large deposits is routine, legitimate planning an attorney handles case by case.
Exemption amounts and rule thresholds change on statutory schedules. See our monthly rule reports for the current figures with citations to the official sources.
Need help protecting what you've worked for?
Majors Law Group, P.C. — an independent bankruptcy firm running its practice on Bankruptcy.AI — handles Chapter 7 and Chapter 13 cases in Arizona and Washington.
Bankruptcy.AI is a technology platform, not a law firm, and does not provide legal advice. Majors Law Group, P.C. is a separate, independent law firm. This page is general information and is not legal advice; outcomes depend on your specific facts.